South Korean stocks are expected to trade stronger next week as expectations of better Seoul-Beijing relations could help exporters, analysts said Saturday.

The benchmark Korea Composite Stock Price Index closed at 2,557.97 on Friday, up 2.45 percent from the previous week.

On Monday, the bourse set a new record with its index closing above the 2,500-level mark for the first time since it opened in 1983. The record-breaking performance was widely attributed to the strength of technology shares.

Market kingpin Samsung Electronics said its third-quarter operating profit came to 14.53 trillion won ($13 billion) in the July-September period, soaring from 5.2 trillion won posted last year. The company said its record profit was based on strong returns from the chip business.

Later in the week, Seoul shares lost ground as investors sought to lock in profits after the market posted a new record for four consecutive sessions.

On Friday, however, it closed at another high on abated uncertainties from the US market following the nomination of Jerome Powell as the new head of the Federal Reserve.

Foreigners scooped up a net 825 billion won, while institutions sold more shares than they bought at 954 billion won. Retail investors offloaded a net 6.81 billion won.

Market watchers said for the new week, Seoul shares are anticipated to trade higher as the easing of tensions with China will benefit listed firms that depend heavily on the Chinese market.

Beijing had been rolling out various forms of economic retaliation against Seoul in protest of South Korea's installation of an advanced US missile defense system, although the two countries decided to put their relationships back on track this week.

Analysts, however, added the market needs to keep a watchful eye on US President Donald Trump's first visit to South Korea next week.

"As long as there are no unexpected developments during Trump's visit, the sentiment remains positive due to the signs of recovery for the global economy coupled with the weak US dollar," said Kim Byong-yun, an analyst at NH Investment & Securities.

(Yonhap)